Victor Ugochukwu · Oct 27, 2020 . 6min read
Floods in China’s Sichuan could lead to collapse of Three Gorges Dam
Flooding in the China's Sichuan has caused concern over the mining operations in the region. People are also worried about the state of the Three Gorges Dam
By Shilika · Aug 5, 2020 . 6min read
The monsoon season in China is hitting the Sichuan province hard. Sichuan is a landlocked region in Southwest China. It is very close to the Three Gorges Dam, which is by far the largest dam in the world.
The monsoons have been going on for two months now. It has displaced more than 750,000 individuals from the Sichuan region. The people are from as many as 26 provinces. Across the entire country, it is reported that 54 million Chinese are severely affected by the floods in China’s Sichuan. The crypto community worries as it has a vast number of miners in Sichuan.
Numerous reports from the past indicate that at least 50% of Bitcoin’s global hash rate originates from China. They have an enormous number of mining operations, with most of them located in the Sichuan region. Historically, when the floods have hit, the hash rate has taken a hit. However, many analysts believe that the impact is overstated.
The miners anticipate the floods and thus make plans to shift their operations elsewhere. Their mining equipment still suffers damages. In many cases, when left behind.On the other hand, the monsoon season is accompanied by cheaper electricity. These prices lead to record high hash rates.
Worries over dam failure in Sichuan
One of the main worries for individuals in Sichuan is the proximity to the Three Gorges Dam. Many are concerned about the structural integrity of the dam. It spanned the Yangtze River in the Hubei Province and was built by the China Three Gorges Corporation. If it were to collapse, the damage to the region would be catastrophic. The Three Gorges, along with the Gezhou Dam, has stopped 30 billion cubic meters of floodwater from devastating the region over the last month. This is according to the data from the Changjiang Ministry of Water Resources.
Chinese billionaire Miles Guo was one of the first prominent voices to raise concern over the state of the dam. To inspect the condition of the dam, researchers seek to fly over the region to take pictures. The Chinese government has however designated the region as a no-fly zone with the army keeping a close eye. This increases speculation that the dam may well be close to its limits.
Tokensight’s financial analysts explained that the miners in China have anticipated the floods and prepared for it. Moreover, the global hash rate for Bitcoin is in the region of 120-125 EH/s and has been climbing throughout the monsoon period.
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Victor Ugochukwu · Oct 26, 2020 . 5min read